Global Ethanol Market size was valued at USD 85.8 Billion in 2023 and is expected to reach USD 145.6 Billion by 2032, at a CAGR of 6.8% during the forecast period 2023 – 2032.
Ethanol Market: Overview
Ethanol, often known as ethyl alcohol, is a form of alcohol that is frequently employed as a solvent, fuel, and ingredient in alcoholic drinks. It is an unstable, flammable, colorless liquid with a distinct odor. Ethanol is generated by yeast fermentation or synthesis of chemicals.
The growing emphasis on energy from renewable sources and decreasing greenhouse gas emissions has resulted in rising demand for ethanol as a biofuel. To reduce carbon intensity, governments throughout the world are enacting rules and regulations requiring ethanol to be blended with gasoline.
Furthermore, advances in ethanol production methods, such as cellulosic ethanol production, are increasing efficiency and sustainability, fueling market development. In addition, ethanol’s growing application in industries other than gasoline, such as pharmaceuticals, beverages, and chemicals, is broadening demand.
Moreover, the ethanol industry is shifting geographically, with rising nations in Asia-Pacific and Latin America expanding their contribution to world production and consumption. In summary, these factors are pushing the ethanol market further greater sustainability, innovation, and globalization.
By type, the synthetic segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period 2024-2032. Synthetic ethanol dominates the market because it can be manufactured from a variety of feedstocks, notably biomass and natural gas, providing flexibility, and scalability, and reducing reliance on traditional ethanol sources such as maize.
By feedstock, the starch segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period 2024-2032. Starch is a key component of the ethanol industry since it is used as a fundamental feedstock for ethanol production via fermentation processes, notably corn-based ethanol.
By application, fuel & fuel additives segment held the highest market share in 2022 and is expected to keep its dominance during the forecast period 2024-2032. The ethanol industry is driven by fuel and fuel additives, governmental regulations supporting renewable fuel consumption, ethanol’s role in decreasing emissions of greenhouse gases, and its incorporation into gasoline for octane improvement and oxygenated.
The Asia-Pacific region dominates the ethanol market due to increased industrialization, infrastructural development, and a growing emphasis on renewable energy and sustainability, resulting in increased demand for ethanol-based fuels.
As part of a deal with Gevo, Archer Daniels Midland plans to employ more than half of its ethanol production capacity to generate sustainable aviation fuels. ADM runs 7 ethanol facilities in Nebraska, Iowa, Illinois, and Minnesota, with a combined capacity for production of over 1.6 billion gallons.
ADM manufactures ethanol from maize feedstock using an efficient method that also creates a huge volume of animal feed. Clients, typically big energy corporations, combine these compounds with unleaded gasoline in varying amounts to enhance the fuel’s octane rating, which, by EESI, contributes to lower harmful emissions.
Report Scope
Feature of the Report | Details |
Market Size in 2023 | USD 85.8 Billion |
Projected Market Size in 2032 | USD 145.6 Billion |
Market Size in 2022 | USD 83.5 Billion |
CAGR Growth Rate | 6.8% CAGR |
Base Year | 2023 |
Forecast Period | 2024-2033 |
Key Segment | By Type, Feedstock, Application and Region |
Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
CMI has comprehensively analyzed the Global Ethanol market. The driving forces, restraints, challenges, opportunities, and key trends have been explained in depth to depict an depth scenario of the market. Segment wise market size and market share during the forecast period are duly addressed to portray the probable picture of this Global Ethanol industry.
The competitive landscape includes key innovators, after market service providers, market giants as well as niche players are studied and analyzed extensively concerning their strengths, weaknesses as well as value addition prospects. In addition, this report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships.
List of the prominent players in the Ethanol Market:
- Archer Daniels Midland Company
- Green Plains Inc.
- Valero Energy Corporation
- POET LLC
- The Andersons Inc.
- Cargill Incorporated
- Pacific Ethanol Inc.
- Flint Hills Resources
- Abengoa Bioenergy
- CropEnergies AG
- RaÃzen Energia
- Petrobras
- Tereos
- Husky Energy
- BP plc
- Royal Dutch Shell plc
- Cristal Union
- White Energy
- Sasol Limited
- COFCO Biochemical (AnHui) Co Ltd.
- Others
The Ethanol Market is segmented as follows:
By Type
- Synthetic
- Biobased
By Feedstock
- Starch
- Sugar
- Cellulose Based
- Others
By Application
- Fuel & Fuel Additives
- Industrial Solvents
- Beverages
- Disinfectant
- Personal Care
- Others
Regional Coverage:
North America
- U.S.
- Canada
- Mexico
- Rest of North America
Europe
- Germany
- France
- U.K.
- Russia
- Italy
- Spain
- Netherlands
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Taiwan
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America